16.	Subsequent Event - Revolving Credit Agreement

As of

March 31, 2020,

there were

outstanding borrowings under the Credit Agreement. On

April 8, 2020,

the Company submitted a loan notice to draw down the

$50.0

million available under its existing credit facility, with an initial applicable interest of

2.08%.

The credit facility will mature in

October 2022,

and the Company

may

prepay the credit facility at any time without penalty. Proceeds from the borrowing

may

be used for purposes permitted under the Credit Agreement, including for working capital and general corporate purposes.

The existing credit facility was entered into on

October 24, 2017.

The Company, as borrower, entered into a new

five

-year agreement with Bank of America, N.A., as administrative agent, swingline lender and issuer of letters of credit, for a

$50.0

million senior revolving line of credit (the “Credit Agreement”). Subject to certain conditions, the Company

may

request up to an additional

$50.0

million in commitments for a maximum aggregate commitment of

$100.0

million, which requests must be approved by the Revolving Lenders (as defined in the Credit Agreement). Loans under the Credit Agreement generally bear interest equal to, at the Company’s option, either: (i) LIBOR plus the Applicable Margin, as defined below, or the (ii) Base Rate, defined as the highest of: (a) the Federal Funds Rate plus

0.50%,

(b) Bank of America, N.A.’s prime rate and (c) the

one

month LIBOR adjusted daily plus

1.0%,

plus the Applicable Margin. The Applicable Margin ranges from

0.25%

1.75%

based on the Company’s consolidated leverage ratios at the time of the borrowings under the Credit Agreement. The Company has agreed to pay a commitment fee in an amount that is equal to

0.25%

per annum on the actual daily unused amount of the credit facility and that is due and payable quarterly in arrears. Loan origination costs are included in Other long-term assets and are being amortized over the

five

-year term of the Credit Agreement. As of

December 31, 2019

and

2018,

there were

outstanding borrowings under the Credit Agreement and the Company was in compliance with the terms of the Credit Agreement. The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants, events of default, and indemnification provisions in favor of the Lenders. These include restrictive covenants that require the Company

not

to exceed certain maximum leverage and interest coverage ratios, limit its incurrence of liens and indebtedness, and its entry into certain merger and acquisition transactions or dispositions and place additional restrictions on other matters, all subject to certain exceptions. The Lender has been granted a

first

priority lien and security interest in substantially all of the Company’s assets, except for certain intangible assets.